Shanghai, China – September 3, 2026 – Frost & Sullivan, in partnership with TradeGo, LeadLeo and CCXGF (China Chengxin Green Finance Technology (Beijing) Ltd.), officially unveils the 2026 Blue Book on the Development of Hong Kong Stock Exchange 18A Biotech Sector, delivering an in-depth panorama of the Hong-Kong 18A biotech ecosystem, capital market cycles, innovative drug R&D breakthroughs, enterprise commercialization progress and global expansion trends. The report serves as a critical reference for industry practitioners, investors, research institutions and regulatory stakeholders to grasp industrial dynamics and make strategic decisions. (To read the 2026 Blue Book on the Development of Hong Kong Stock Exchange 18A Biotech Sector, visit https://hub.frost.com/hong-kongs-chapter-18a-biotech-sector/ )

Since the launch of Hong-Kong Stock Exchange’s Chapter 18A listing rules in 2018, Hong Kong has built a vital financing hub for unprofitable biotech firms from Greater China. As of June 2026, nearly 93 biotech companies have gone public under the 18A framework, covering small-molecule drugs, antibody therapeutics, vaccines, nucleic-acid medicines, peptides, cell & gene therapy (CGT), IVD, surgical robots, medical devices and other high-growth innovation tracks. A growing number of enterprises have completed clinical development and achieved product commercialization, marking the sector’s transition from pure R&D-driven speculation toward value-oriented industrial growth.

Key Market Observations from the Blue Book

1. Biotech capital market: Cycle reset, valuation normalization, value re–pricing

Global biotech capital markets have gone through distinct development phases: the upward boom from 2016-2020, a historical peak in 2021, a deep correction during 2022-2023, and the ongoing recovery from 2024 to 2026.

Hong-Kong 18A stocks witnessed a heavy correction between 2021-2022 with market cap evaporating by more than 60%. Entering 2023, sectors stayed at low valuation troughs. Driven by southbound capital inflows and robust overseas BD (business development) transaction performance, the sector staged a remarkable market rebound. From mid-2024 to July 2025, the index surged over 71%, and climbed 82% across full-year 2025; market capitalization recovered to 50-60% of its 2021 peak level.

Market participants are increasingly rational. Investment focus has shifted away from pure concept speculation toward clinical milestone delivery, product commercialization capacity, real-world sales performance and sustainable profitability. The industry has completed its cycle-wide shake-out, with capital firmly anchoring on fundamental business performance.

2. R&D landscape: Diversified innovation pipeline matures, multiple technological tracks blossom

Chinese biotech innovation capability keeps advancing, with clinical declaration volume maintaining high activity across therapeutic segments.

  • Antibody therapeutics: Monoclonal antibodies remain the market cornerstone. Bispecific antibodies and ADCs act as core growth engines. From 2019 to 2025, China-origin antibody-related out-licensing (License-out) transactions jumped from 3 to 56 deals, with aggregate disclosed transaction value rocketing from USD 0.7 billion to USD 0 billion. The asset portfolio has upgraded from conventional mAbs toward high-value bispecific antibodies and ADC candidates.
  • Small–molecule drugs: Cutting-edge modalities including PROTAC, molecular glues and allosteric modulators gain momentum. Domestic new-drug approvals keep rising.
  • Vaccines: R&D spans mRNA, recombinant protein and other next-generation platforms. Domestic players accelerate product iteration and global market access.
  • Nucleic–acid therapeutics: Both siRNA/ASO small-nucleic-acid and mRNA drug pipelines expand rapidly. Upstream industrial-chain localisation is gathering pace.
  • CGT (Cell and Gene Therapy): CAR-T and other cell therapy products come to market. Advancements cover vector development, CDMO capacity build-up and diversified payment-model exploration.
  • Peptide medicines: GLP-1-class agents fuel market expansion, bringing new opportunities for domestic R&D and industrial translation.

3. Globalisation accelerates: License–out becomes core growth driver for Chinese biotech

Cross-border BD transactions have become a signature feature of China’s biotech industry. From 2021 to H1 2026, the volume of domestic biotech BD out-licensing transactions stayed at a high level. In 2025, China’s biotech BD transaction value hit USD 143.14 billion. Apart from classic License-out deals, the NewCo collaboration model is gaining increasing adoption as an innovative international cooperation vehicle.

Out-licensed assets are no longer limited to traditional small-molecule medicines. ADCs, bispecific antibodies, nucleic-acid drugs and other frontier innovative assets account for a larger share of deals. Chinese biotech companies are advancing multi-regional global clinical trials, registering products with FDA / EMA and steadily building worldwide commercial capabilities.

4. Technology empowerment: AI and synthetic biology reshape drug–discovery paradigms

AI is penetrating the full drug-development chain, covering target identification, protein & antibody design, generative molecular optimisation, clinical-trial design. It shortens R&D cycles, cuts costs and lifts clinical success rates, evolving into a core competitive moat for biotech organisations. Synthetic biology further unlocks possibilities for the engineering of next-generation biomedicine products.

5. Evolution of 18A listed companies: From financing tool toward comprehensive global resource–integration platform

18A biotech enterprises have matured in their capital-market mindset. The listing function has upgraded from pure fundraising toward global resource integration. More firms are pushing commercial capability forward in early development phases. Operational priorities are shifting from short-term valuation management to building long-term operational strength. Capital markets are gradually forming a long-term value-driven pricing logic.

The Blue Book also profiles representative 18A-listed biotech enterprises, covering vaccine, endocrine therapy, oncology innovative drug, antibody, nucleic-acid, medical device, surgical-robot and other segments, showcasing their technology platforms, R&D pipelines, key clinical milestones and commercial progress.

Key Topics Covered

‑ Overview of the Hong‑Kong Chapter 18A Regime: institutional background, development history and industrial ecosystem building since 2018

‑ Global biotech capital‑market cycles: multi‑year performance of global and Hong‑Kong biotech indices, market corrections, valuation troughs, and sector recovery after 2024

‑ HKEX 18A‑listed companies: IPO issuance statistics, enterprise panorama map, track distribution, pre‑IPO financing, and post‑IPO secondary‑market performance

‑ In‑depth analysis of core innovative‑drug tracks

  • Monoclonal antibodies, bispecific antibodies and ADCs: pipeline landscape, commercial progress, and global‑out‑licensing data
  • Small‑molecule drugs: PROTAC, molecular glues, allosteric modulators, and trends for domestic new‑drug approvals
  • Vaccines: mRNA and recombinant‑protein technology platforms, R&D pipelines and overseas‑market layouts
  • Nucleic‑acid therapeutics: small‑nucleic‑acid and mRNA pipelines plus upstream industrial‑chain localization
  • Cell and Gene Therapy (CGT): R&D of CAR‑T and other products, CDMO development and exploration of payment models
  • Peptide medicines: market growth driven by GLP‑1 and domestic industrial‑transformation opportunities

‑ Cross‑border business‑development and globalization of Chinese biotech firms: License‑out / License‑in and NewCo collaboration models, transaction scales, asset structures, and advancement of global clinical programs

‑ Technology‑driven innovation: AI‑empowered drug R&D and synthetic biology reshaping biopharma research paradigms

‑ ESG development status of Hong‑Kong 18A‑listed biotech enterprises

‑ Innovative medical‑device tracks: high‑growth segments including IVD, surgical robots and endoscopes

‑ Representative enterprise case studies: profiles of typical 18A‑listed firms covering technology platforms, pipelines, clinical milestones and commercial‑status updates

‑ Future outlook: development trends for the Hong‑Kong 18A biotech sector, paths for enterprise‑capability upgrading, and the capital‑market’s evolution toward long‑value‑oriented pricing

About Frost & Sullivan

Frost & Sullivan (the Growth Partnership Company) has supported global enterprises for more than 65 years on growth-strategy formulation. It serves Global 1,000 corporations, emerging enterprises and public-sector clients, delivering market research, industry blue-book publication, benchmark analysis and strategic consulting services across healthcare, advanced-technology, new-energy and other vertical sectors.

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